Romania Economy

Romania’s location spans Southeastern and Central Europe. With a surface area of 238,391 square kilometers and a population of 21.5 million as of 2007, the country was the twelfth largest and the seventh most populated country in Europe. Following innumerable reforms, which started after the fall of the Iron Curtain in 1989, growth in Romania has hastened and it is now counted among the upper-middle income economies with high human development.[br]

 

Romania’s location spans Southeastern and Central Europe. With a surface area of 238,391 square kilometers and a population of 21.5 million as of 2007, the country was the twelfth largest and the seventh most populated country in Europe. Following innumerable reforms, which started after the fall of the Iron Curtain in 1989, growth in Romania has hastened and it is now counted among the upper-middle income economies with high human development.[br]

 

Romania has the 11th largest economy in the European Union by total nominal GDP and the 8th largest based on purchasing power parity (PPP). With annual GDP growth rates consistently above 6%, Romania was one of the fastest growing markets in the European Union (EU) until 2009. The country has also been referred as a “Tiger” given its rapid development and high economic growth rates.

 

With a metropolitan area of more than 2.6 million people, Romania’s capital, Bucharest, is one of the largest financial centers in the EU. The country has experienced growth in foreign investment with a cumulative FDI totaling more than $100 billion since 1989. 

Romania Economy: Romanian Economic Profile

Romania, which joined the European Union on January 1, 2007, began the transition from Communism to a free market economy in 1989. The country’s industrial base was largely obsolete and the output was unsuited to the nation’s needs.

 

After three years of deep recession, Romania emerged as a stronger country in 2000, aided by strong demand in the EU export markets. Domestic consumption and investment also fueled the country’s GDP growth in recent years, but led to huge current account imbalances. The country saw a rise in inflation in 2007-2008, driven by consumer demand and impressive wage growth, rising energy costs, high food prices and relaxation of fiscal discipline. Inflation abated in 2009, as Romania’s GDP growth contracted due to the global recession. While GDP fell nearly 7% in 2009, unemployment doubled.

                                                                                                                 

Romania’s GDP (purchasing power parity):

• $257 billion (2007)

• $275.3 billion (2008 estimates)

• $256.3 billion (2009 estimates) 

The following data maps the performance of various sectors in the GDP as of 2009:

 

• Agriculture: 12.4%

• Industry: 35%

• Services: 52.6%[br]

   

   

Of the estimated 22,215,421 people (as of July 2009), labor force stood at 9.33 million as of 2009 and was occupied in the three main sectors in the following manner:

• Agriculture: 34%

• Industry: 5%

• Services: 61% 

Romania’s currency is lei (RON), whose exchange rate in relationship to the US dollar stood at:

• 2009 – 3.07

• 2008 – 2.5

• 2007 – 2.43